Spanish Bill Auction Sees Yields Rise Again

11/22/2011 8:46AM

Today's Spanish bill auction didn't go too well, suggesting that the international investment community is still walking away from the euro. Heard on the Street writer Richard Barley discusses the options for the new government, the EU and the ECB.

This transcript has been automatically generated and may not be 100% accurate.

I ... well ... the deal ... to see bill since this morning ... thanks to a pretty high price for the money ... that could see this just go to the new government that has actually have a mandate to reform ... the suddenly looks like bad news in this very disappointing ... for the European markets in general ... which it bought he has been looking at the results of these options and what that status which the festival while Aneel was also bout of new space in rules that say ... well I think it's mostly approving do with the euro zone Robins to respect ... the as you say that the numbers were pretty terrific Spain paid ... for it or one cent to three-month money ... to put them in context Jamaican birth to thirty years to two point six percent ... at all settings with Pena money is paying themselves as a citizen that elicits the opposite is the set which is that RealPage is the last week they paid nearly seven percent to a ten year bond and the Wolf Sion was very bad suggested that ... they were willing to accept very Beats to get the deal ... was just in which it is OK if I had elections in the week and it did actually get this album landslide in the Cancela does that mean that they should thus be able to put off the toothpaste and sort things out what ... leads us to investment into public is a ... village in Spain this possibility was ... that's partly from the spring when does have a couple of issues one of which is ... people are looking in the fight is of a three-week gap now before the government actually comes into power ... this is all quite clear how quickly they'll get wet ... is also prudent steward local governments and central government is quite in control of the steps of ... the local governments need is a bit more control ... but the bigger problem is the year ... what about one second Jimena house the wealth of the of the problem has been that ever seeing the years and has done about the crisis has been to deter investors from buying peripheral government debt ... when down the position where banks of pulling back from from cross border Tuesday and being rewarded for doing such a so-called ECB has only been in the open support these markets are they in their healthiest ancient well this is the old Signet's brain really is that ... despite sprain having been far more credible generally on reform and say it slowly ... it has not been a huge amount was four foot sprain from the ECB ... and that's because of the ... indeed a CDO is it because ... he has been ... leg of the money this is to the community so much until recently but this is called the from the ECB policy currently has forty eight ... the Tories to tinker the margins it doesn't bring the yields down suspended ... I mention that the markets really ... don't want to see something solid to be a new government in times of the services in times of fiscal deficit of the objections aam is the case of the debt due to this yet but you know that she haven't ... been there on we are preparing for the elections actually ... convince the markets of this I think that the markets and our enemies to look for results of a Roman province is ... from the years and they've had a great deal of premises in the years that ... I think the in the Spanish government's promises a more credible and some of those but the but that amount of local government so they ... settled the they can say one thing but it ... and they know how Thoma some local governments often how difficult it is going to be for them to actually bake spending cuts out of the ground level exactly ... and that you think this is something is really inappropriate use of public spending or do because with all ... the other side to do this by the storm as well as the bank agreed to which it is still ongoing with people still have doubts about how much actually ... the Scottish total you'll have to say that the lives of the service to those from second to ... last a ... week in which it holds a smooth EFSF was the only see when that time you have ... all but without any expanded ... is the ECB to be able to use the euro zone bonds as the gems ... you ... objected to this ... the episode from as far as I can tell in terms of expanding to one even one trillion is enormously difficult ... it's already doubtful whether it can fall from its original function cited ... in the end I didn't see ... a real solution to the ending the crisis that year is among the troops but we all ... along why away from a solution is still just basically ... using that Salu the OECD high and down with the euro at the moment no change to ... the SEC but to thank the much indeed